About Workshop
Every business or non-business organisation incurs costs while running its operations. Businesses that can minimise its cost can ensure profitable growth. Thus organisational cost efficiency has become a key success factor for today’s business organisations. However, main challenges for the businesses are to identify relevant product or service cost and rank the costs against benefits. Also organisations can hardly observe the impact of overall profit by cutting a specific cost. It results in cutting essential and keeping unnecessary costs.
This course is designed to enable the participants to manage and control costs efficiently to optimise organisational benefits. At the end of the course the participants will be able to –
1. Identify relevant costs of products and services with full knowledge of practical costing techniques;
2. Rank costs in terms of benefits, importance and volatility;
3. Cut and reduce unnecessary costs and assess overall impact on the firm profitability;
4. Design practical cost planning and monitoring tools.
5. Budgeting and Budget Performance Evaluation;
6. Measuring Performance of Divisionalised Businesses.
Workshop topics to be covered:
DAY 1
Session One: Determine Product/Service Cost using Costing Techniques
Classify costs according to their nature;
Identify cost behaviour;
Use Absorption Costing to determine relevant product and service costs;
Develop practical costing model using Microsoft Excel
Session Two: Ranking Costs in Terms of Benefits Importance and Volatility
Rank the costs using Pareto Charts;
Compare costs against benefits and present comparison using stacked bar/column charts;
Rank the costs based on their volatility;
Develop practical cost scoring model to identify cost priority;
Session Three: Determine costs that can be eliminated and assess firm profitability after elimination
Determine cost that can be reduced by certain percentages and assess firm profitability after elimination;
Identify cost that needs priority;
Develop practical cost control model;
DAY 2
Session One: Cost Planning and Monitoring Model
Cost budgeting and planning models
Cost monitoring model;
Cost control techniques against results of monitoring;
Reporting cost performance.
Session Two: Budgeting and Budget Performance Evaluation
Preparing fixed and flexible budgets;
Budgetary Control;
Financial and Non-financial Performance Indicators;
Balanced Scorecard
Session Three: Measuring Performance of Divisionalised Business
Understanding Responsibility Centres
ROI and Decision Making
Residual Income and Economic Value Added
Transfer Pricing
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